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Joined: 28 Dec 2005 Posts: 11987
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Posted: Thu Jan 17, 2019 3:57 pm Post subject: Jan 17th Trading Log (Fri Trading Plan) |
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Jan 17th Trading Log (Fri Trading Plan):
I’ve been following technical indicators for over two decades, and they all failed at times, except the daily NYMO (and three standard errors), although an extreme low works better than an extreme high. Nonetheless, it totally failed this time. The daily NYMO closed at 94 and its 10-day MA is 96, which is unprecedented by a large margin. Moreover, SPY and QQQ are in the middle of many resistance levels. I expect, at least, greater volatility, if not a substantial pullback. So, I’ll buy puts on bounces, and sell on pullbacks. Puts that expire after tomorrow - the January 18 puts - will have huge leverage, and huge gains can be made, if the market sells into the weekend.
My portfolio is about $420,000 including $315,100 in cash.
Calls Contracts-Shares Long
SLB Feb 42.5 2019 50
GE Jan 10 2020 300
Puts Contracts-Shares Short
SPY Jan 265 2019 20 weekly 25th
SPY Feb 260 2019 50
SPY Feb 265 2019 40
QQQ Jan 165 2019 20 weekly 25th
QQQ Feb 165 2019 50
Portfolio at $100,000 on Mar 1st, 2018. Portfolio stop loss raised to $300,000. Stop loss will be strictly enforced and extreme caution will be taken if triggered to avoid large losses and preserve capital in "irrational" market periods. |
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